All Forum Posts by: DJ Dawson

If I can be "ALL IN" 80% or lower compared to our ARV its worth it here in CA.

you are 100% right, the market is BOILING right now, whether purchasing or renting.  

If the market dictates a higher price I wouldn't call that greed (especially since the unit is vacant, you aren't RAISING anybody's rent

I would call it good business :)

 hmmmm not to sure about that tbh, even if its just a friend who acts as such would probably bode well for you, and just want to say you are WAY ahead of most people who will even take this journey, don't overcomplicate the which home to buy part, this market is so difficult as is, finding something that allows you to reduce expenses + build equity is a win-win. This is your FIRST house not your LAST house so just remind yourself of that, you probably won't even be living in it 5 years down the road anyways right :)

good luck!

@Patricia Steiner LOL!!

@Chelsea Luciani I would make sure you have a PM if your roommates are going to be random & you act like a roommate yourself to avoid them asking you for every little thing

@Jim K. 8+7 = (1)5

Carry the 1, 4+2+1 = 7

75

interactive mural, selfie photo back drop. GENIUS!!!!

was going to come in here to suggest my guy @Pavan Sandhu but he already came through! He can help you out!

Wanted to share my latest project I completed in El Dorado Hills CA.

Purchase price - 256k

rehab - 54k

estimated ARV - 370k

under contract at 385k :)

How I found it
my good friend who is an agent as well found the deal, our agreement was he gets me the deal and I allow him to list it on the back end for 2.5% (standard commission)

How I financed it

Used a hard money lender to finance the deal, then partnered with a private lender to come up with the cash to close thus zero money in for me :)

Rehab details

A mainly cosmetic rehab which took a LOT of clean up. A small summary of the SoW includes: Roof certification via light roof repair and gutter replacement, exterior pest work for section 1 clearance, new flooring throughout, full kitchen and bathroom remodels, new windows where needed (3) and glass sliders for backyard, new HVAC system, scraped popcorn ceilings for imperfect smooth, can lighting throughout, new receptacles and switches, new door knobs and finishes throughout, and some stuff I'm sure I forgot to mention. Hired out most of the trades (plumbing, roofing, electrical, tile, flooring, etc.) and handled all project management duties, demo, landscaping, some light electrical, etc.

Lessons learned

I was nervous doing a condo because of the HOA horror stories I have heard but the numbers worked so I said lets do it, within the first week I had a letter on the front door from the "HOA manager" regarding the front door I installed. Upon calling her she was shocked to hear I had a letter on my front door because "she would never do such a thing and that some people in the community tend to overstep". This was a red flag for me but she said that it would be handled (it never was lol)

I have done 5-6 flips now and our teams are getting more and more locked in, our efficiency has gotten much better each job and its exciting to see. Some things I personally could have done better was getting a punch list written out earlier, we have an overall SOW sure but there's always little things down the stretch that pop up that aren't necessarily on the SOW but still need to done handled.  That + trying to give a new photographer a shot because he's my boy which didn't work out then we had to get the new photo guy in there afterwards ended up costing me about a week of extra time but overall still really happy with the final result.

Another thing, I always get a section 1 clearance and roof certification on my flips, in fact I try to get my clients who are selling their homes as well.

EDIT: 

Forgot to mention the birdhouse part LOL the lady owned THIRTY BIRDS!!! Half the living was caged off with PVC pipe and chicken wire, it was pretty f*cking disgusting to clean up but sweat equity is how we make that $$$$ LOL!

Also got a lot of questions on my private funder, this is a relationship I built through my own local BP group!! Putting yourself out there, going to meet people, and having CLARITY in your vision for your business and your long term goals is the only way to earn TRUST from others who would be willing to invest in you. Competence breeds confidence and knowing your stuff is the first step to being confident. 

See the photos here 

https://www.dropbox.com/sh/fuc...

@Robert Farris the VA loan will only work up to 4 units so keep that in mind, competence breeds confidence, the more you analyze deals and run numbers it will make you that much better at the process and thus more confident that you know what you're looking at. My suggestion? Just rent rooms on a lease out the gate, get your feet wet as a property owner and landlord in a situation w much less variability that would come with short term rental guests maybe 10-15 different guests every month. It may be a bit much for a full time employee and first time investor to bite off and ensure you're working with an agent who is not only an agent but an INVESTOR. They need to be able to know exactly what your goals are and help you run numbers accordingly